Storm, Magni, and the Houseband get the boot
Not everyone comes off as that happy with it though. As the story has gone on there are a lot of posts being copied between different sites attributed to different members of the Houseband. Over at Television Without Pity one shows up that begins with "Nate (Morton, drummer from the Houseband) just sent me this..." which would purport to be a response from the Houseband. I'll leave it up to you to decide the legitimacy of the posts, but it gets into some of the details from the band's perspective.
He also says that the reasons were financial, but makes a point of the fact that the band had agreed to terms for the tour and never made any changes. The finger is then pointed at the Rockstar:Supernova management. There is also a dig, a deserved one I think, that says, "We consider the act of selling one thing and delivering another not only irresponsible, but extremely unprofessional."
Later in that same thread there is a post by kennythecat which is a response from Paul Mirkovich, leader of the Houseband. Most of the post is his rant, which I agree with, about why you shouldn't compare American Idol and Rockstar. But toward the end, the telling part is in the omission. He wishes luck to Lukas, Toby, Dilana, Magni, Storm, and all of the rockers from this year and last. No mention of Rockstar:Supernova though.
Houseband guitarist Jimmy McGorman weighs in with his own statement which includes the tidbit that they have been replaced by Toby's band. The popular conspiracy theory floating among fans is that the powers that be within Rockstar:Supernova realized that they were going to be upstaged by the Houseband. Whether that is true or not, we'll never know, but I can certainly see where the idea comes from. Given what we heard from Rockstar:Supernova on the series, I would be much more excited to see the Houseband and Storm Large too.
Whether those posts are authentic or not, it seems that there is trouble in the world of Rockstar:Supernova. Who could have seen that coming? If you still want to see the Houseband, they'll be backing up Paul Stanley on his new tour beginning October 21st in Atlanta.